How do the new fields on the the Free or Cheap Accommodation Fringe Benefit (New) component work?
This feature is available on all PaySpace editions.
Providing an employee with residential accommodation, whether at no cost or for a lower amount than its determined rental value, results in a taxable fringe benefit. This accommodation can be furnished or unfurnished and may include or exclude fuel, electricity, or water
When the Accommodation Fringe Benefit is added to an employees Recurring Payroll Components screen the user needs to select one of the 3 available options.
Navigate > Employee > Payroll Processing > Recurring Payroll Components > Fringe Benefits
The options available for selection are:
- Does the employee have an interest in the accommodation?
- Should the abatement be reduced to zero as per section 9.(3)(ii)(aa) and (bb)?
- Is the accommodation obtained by the employer or associated institution at an arm’s length transaction with an unconnected person; and the full ownership does not vest in the employer or associated institution?
When the selection is made the formula will be applied and adjusted as per the below.If the option 1 "Does the employee have an interest in the accommodation?" is selected, the accommodation formula will be applied.
If option 2 "Should the abatement be reduced to zero as per section 9.(3)(ii)(aa) and (bb)?" is selected, the Abatement will be reduced to zero in the formula.
If option 3 "Is the accommodation obtained by the employer or associated institution at an arm’s length transaction with an unconnected person; and the full ownership does not vest in the employer or associated institution?" is selected on the component, the system will take the lower of the formula value or the expenditure paid by employer captured on the screen.
If option 1 and 2 is selected, the formula will be used but the abatement will be reduced to zero.
Related Articles
How do I add the Free or Cheap Accommodation Fringe Benefit (New) component?
This feature is available on all PaySpace editions. Free or Cheap Accommodation refers to providing an employee with residential accommodation, whether at no cost or for a lower amount than its determined rental value, results in a taxable fringe ...Why is the Free or Cheap Accommodation Fringe Benefit (New) component not pulling through to the employees payslip after it was added?
This applies to all PaySpace editions. Edit the component and check that the Remuneration Proxy (Previous year of assessment) and Employer Accommodation Expenditure fields are completed. Navigate > Employee > Payroll Processing > Recurring Payroll ...Payroll Processing | Recurring Payroll Components
A Recurring component refers to a regularly appearing component in an employee's payroll that is a part of the employee's regular compensation package. These components are calculated and included in each pay period, and are an essential part of an ...How do I configure a Taxable Recurring Bursary component?
This feature is available on all PaySpace editions The Taxable Recurring Bursary component has to be configured on company level before it can be linked to an employee. Step 1: Search for and create the taxable bursaries component. Navigate > ...How do I set up a non-fringe benefit loan on an employee's record?
This feature is available on all PaySpace editions To load a non-fringe benefit Loan Deduction component, enable “Is this a non fringe benefit loan?” checkbox when adding it under the Deductions section of the employee's Recurring Payroll Components ...